Simultaneous Release at www.thegeekknows.com

Good day koalas.

Today is mid week Wednesday. I hope you are green so far. If you are, well done and stay so. If you are red, try to recover but not let emotions rule you.

Yesterday we noted that the strikes in Greece were escalating. Government workers closed schools, hospitals and disrupted flights. Demonstrations were held against further salary cuts and tax increases. These measures were proposed to cut budget deficits. Investors did not like a country with problems and this probably caused much risk aversion. Furthermore, there was growing fear that focus would soon turn to Spain or Portugal. These two countries recently received rating cuts.

The EUR/USD faces major bearish pressure. Only 1 bullish candle can be seen above.

Looking at the S&P 500, sentiments are affected too as the index dropped below 1180 and tested 1160.

Oil is affected too and is currently trading at $83+.

Despite a stronger US Dollar, gold is holding steady at around $1174+. This suggests a strong demand and may be a result of strong risk aversion. Gold is a popular investment when the economy faces uncertainty.

***

The strikes in Greece have escalated into worst conditions. Buildings were on fire and three deaths were reported. Citizens were unhappy that they were made to suffer because of the decisions of the politicians that led them there. The reports of deaths in the protests increased the negative sentiments and resulted in the declines of stocks and bonds. Comments were made that the measures are only meant to save costs but more needs to be done to ensure growth and recovery.

ECB’s Weber mentioned that there is a threat that the crisis in Greece may spread to other member states. Moody’s Investors Service is considering a credit rating cut for Portugal as it notes that the country faces challenges to reduce it’s budget deficit.

We know that sentiments, especially negative sentiments spread like cancer and extreme caution is recommended. As Germany debates about it’s part of the aid package, investors will be monitoring closely. Any setback may cause extreme reactions.

Tomorrow brings us the Euro minimum bid rate among other important news such as the US unemployment claims. Keep a look out for the press conference that comes with the minimum bid rate announcement. Many investors will probably be anticipating this and the possible hints of any development of the current Euro Crisis.

Bullish relief if any may bring us back to 1.2950 /1.3000.

Further bearish assaults may see us at 1.2800/1.2720.

***

I worked 15 hours again. While i am very tired, time does seem to pass faster. I have been doing lots of thinking lately. Is my emotional genes strengthening like the US Dollar? Or is age catching up on me like a budget deficit. LoL Either way, i am deeply saddened by the loss of 3 lives in Greece. Life is beautiful. It shouldn’t end this way.

Trade safely and live well.

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